New Zealand commodity prices have fallen for a fifth straight month, led by a decline in dairy prices to their lowest level in 11 years.
The ANZ Commodity Price Index slid 5.2% in August, following a 5.5% decline in July.
The index is 23.5% below year earlier levels.
Prices also fell across other commodities in August. Forestry prices slid 6.1%, led by a 10.4% fall in log prices reflecting weaker demand from China and the wider Asian region. Timber and pulp prices were flat.
The drop was led by a slump in dairy prices, which fell 10.1% from July. Skim milk powder fell 16% while whole milk powder dropped 11.2% and international prices for butter, cheese and casein also declined.
However, dairy product prices rose 10.9% in the Global Dairy Trade auction overnight, taking the gain over the last two events to 23% after nearly six months of declines.
ANZ chief economist Cameron Bagrie said the recent lifts in dairy auction prices “suggest the worst may be behind us”.
Horticulture prices fell 1.6% as both kiwifruit and apple prices declined.
Aluminium prices dropped 5.6%, and are 22.9% lower than the year earlier.
Meat prices bucked the trend, increasing 1.6%.
